We all know that China is currently the world’s emerging economy. And it has achieved this status in many ways. Which we will mention in today’s article. Chinese Government plays an important role in trade. It is generally said that privatization is necessary for development. But in China, the government has its own more shares than private stakeholders.
China And World Trade Organization
China joined the WTO from 2000 onwards. The WTO has its own conditions. Most notably is that the countries have to open their economies to the world. China also accepted this condition at that time. China Kept sending its cheap goods all over the world. And now you can see Chinese goods all over the world.
But if you look at how much trade has gone to China from all over the world. You will be surprised to know that China accepts very little. There are big online media platforms like Google, WhatsApp, and Facebook. They can’t enter China. Because China did not allow them to enter their country. Although China had accepted WTO’s condition that it will allow the things of the world to come into its country.
China’s Cloning Tactics
China’s way of working has been to copy things from different parts of the world. Use them cheaply in their own country. And export these cheap copies to other countries. If a company wants to work in China. It has to do all the research and development so far. And have to share with China. This is a precondition of trade in China for foreign companies.
Currency Devaluation For Cost Benefits
China is also accused of keeping its currency undervalued to get cost profit. This is why many countries are reluctant to make goods in their own countries. They prefer to get things from China. As it is cheaper than to make it in their own countries. And because of the low cost of Chinese goods, it heavily dumps its goods to the world on a large scale.
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Debt Trap Policy Of China
China is also accused of using debt traps on many poor countries. We have examples of many African countries. Where initially China massively invested in their countries infrastructure projects in the veil of loans. China knew they couldn’t repay. After some time China grabbed their strategic ports and assets as repayment. Srilankan Hambantota port is one example.
Many countries see belt and road initiatives as suspicious of debt traps. Every country has its own interests with other countries. There should be transparency and equality of opportunities in BRI projects.
Lack Of Free Media In China
China also lacks free media in its country. There is no opposition party system. So it is very difficult to analyze the Chinese Communists party’s policies and strategies. This is why coronavirus cases were initially recorded in China. No one had more information about the reality of things.
Still today China denies access to the Wuhan lab. Which is blamed to be the originating place of the virus. But one thing is for sure. That Americans blame China on this shit and likewise, China accuses Americans of this.
Equal Playing Field Is Must For Transparency
So this is the Chinese way to do global business. Some people don’t like it and China thinks it’s right. The author leaves it up to his readers to decide if it’s right or wrong. In my point of view, there must be equal level play. Everyone should be equal. Everyone should have an equal opportunity. And it seems that China is not doing that fully.
In recent days, China and the United States have seen a lot of trade competition. Both countries imposed tariffs to support their local markets. They both have markets for rival countries’ goods. Complete boycotting is not surely an option. In this globalized world. No country can alone survive without cooperation.